(Yicai) March 20 -- Even though renewable energy has experienced an explosive growth in the past decade, demand for natural gas will remain high for a long period of time, given that it is the main low-carbon energy source, according to the vice president of the International Gas Union.

Natural gas will continue to play an important role in replacing high-carbon energy sources, providing flexibility to grid operations and ensuring energy security, Li Yalan said at the Sixth China Liquefied Natural Gas Conference yesterday.

The use of natural gas can reduce carbon emissions by 50 percent to 55 percent in urban life, by 40 percent in power generation, and by 20 percent in heavy-duty trucks and ships, according to Li.

The problems of renewable energy are the fluctuations in power supply, and the fact that existing energy storage technologies and capabilities are unable to help the grid accommodate wind and solar power on a large scale, Li noted. Therefore, before large-scale energy storage technologies become commercially viable, natural gas will remain the main choice to support the consumption of renewable energy, she added.

Global natural gas consumption surged 23 percent over the past decade, reaching 4.3 trillion cubic meters last year. It is expected to further climb to 4.8 trillion cubic meters in the next 10 years, with LNG consumption projected to increase from 430 million tons to around 600 million tons by 2030.

China's annual demand for natural gas will likely double to at least 800 billion cubic meters by 2040 from last year, indicating significant market growth potential, Li said.

Against the backdrop of increasingly complex geopolitical events, such as the Russia-Ukraine conflict and the war in the Middle East, and a dependence on external natural gas supplies of about 40 percent, China should include the construction of strategic natural gas reserves in its agenda to stabilize market supply and prices, she suggested.

China's natural gas production is expected to increase to over 310 billion cubic meters in 2030 from 261.9 billion cubic meters in 2025, while its annual LNG receiving capacity is projected to exceed 200 million tons, Li forecast.

Editors: Tang Shihua, Futura Costaglione